PRESS RELEASE
Q1 results for the financial year 2018/19 (1 April to 30 June 2018)
LEM reports strong sales and robust margins
Fribourg, 31 July 2018 – LEM (SIX: LEHN), the market leader in providing
innovative and high-quality solutions for measuring electrical parameters,announces Q1 of 2018/19 results (compared with Q1 of 2017/18):• Bookings increased by 9.1% from CHF 78.8 million to CHF 86.0 million;
the book-to-bill ratio decreased to 0.98 (1.04)• Sales reached CHF 88.0 million, an increase of 16.0% (CHF 75.9 million);
at constant exchange rates, sales increased by 10.4%• EBIT improved by 16.1% from CHF 16.0 million to CHF 18.5 million; theEBIT margin was at 21.1% (21.0%)• Net profit for the period rose by 1.8% to CHF 13.5 million(CHF 13.3 million)“We achieved a good quarter with strong sales and robust margins. And, our orderbook remains strong. The green cars business again proved to be the growth driverof the Group. The industry-wide shortage of electronics components only had limited
effect on our delivery capability. We continued to execute our growth strategy bystrengthening our R&D activity and the launch of several new products. We focusedon the development of our Automotive organization and added production capacities
and sales resources in our growth markets. On the other hand, we expect that theintroduction of new US-tariffs and the reduction of government support for renewableenergy in China will affect our business in the future”, said Frank Rehfeld, CEO ofLEM.
Industry segment: solid sales growth in all regions and businesses
Positive economic sentiment translated into continued sales growth. Compared to Q1of 2017/18, sales in the Industry segment increased by 13.1% to CHF 70.8 million inQ1 of 2018/19; at constant exchange rates the sales increase was 7.2%. LEM
recorded the strongest sales growth in Europe (+21.6%) and Asia excluding China(+19.2%). Sales in China remained stable after sales jumped by 37.0% one year ago.
Sales in North America increased by 13.7%. Asia was the most important region,accounting for 49.1% of Industry sales (China alone accounted for 33.1%), followedby Europe with 38.8% and North America with 10.2% of Industry sales.
Sales in the drives & welding business were up by 11.2%. Ongoing strong demand
for automation and robotics application drove the sales development. After a strong
year, growth in the renewable energies & power supply business slowed to 5.9%.
Solar energy was strong in Europe but weakened in China, where LEM expects aslow-down in the coming quarters. Increased infrastructure investments in all regions
supported LEM’s traction business, which grew by 29.9%. Sales in the high-precisionbusiness increased by 24.4% due to strong demand for test benches for green cars
and batteries.

LEM Holding SA
Avenue Beauregard 11700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

The EBIT margin of the Industry segment improved to 22.3% compared with 21.3%
in Q1 of 2017/18.
Automotive segment: increased green cars activity in Europe and USA
In Q1 of 2018/19, sales in the Automotive segment totaled CHF 17.3 million,
representing an increase of 29.8% on Q1 of 2017/18. At constant exchange rates,
sales grew by 25.4%. Sales growth reached 66.0% in China and 45.2% in Asia
excluding China. Sales in Europe increased by 39.2%. Automotive sales in North
America decreased by 12.7% due to the ongoing weakness in LEM’s biggest
conventional cars market.
LEM’s green cars business grew by 86.0%. The strong sales growth in China
continued, and European and US car manufacturers increasingly launch batteryelectric and hybrid-electric platforms. As expected, LEM’s conventional cars businessslowed in all regions; sales decreased by 14.5%.
The EBIT of the Automotive segment reached CHF 2.8 million, up 4.0% on Q1 of
2017/18. The EBIT margin was 16.0%, compared with 20.0% one year ago. TheEBIT margin was affected by LEM’s increased investment in R&D, sales andproduction capacities.

Financial calendar
The financial year runs from 1 April to 31 March

6 November 2018
1 February 201922 May 201927 June 2019
2 July 2019
4 July 2019

Half-year results 2018/19
Third-quarter results 2018/19
Year-end results 2018/19
Annual General Meeting of Shareholders for 2018/19
Dividend ex-date
Dividend payment date

LEM – At the heart of power electronics
LEM is the market leader in providing innovative and high quality solutions formeasuring electrical parameters. Its core products - current and voltage transducers are used in a broad range of applications in drives & welding, renewable energies &power supplies, traction, high precision, conventional and green cars businesses.
LEM’s strategy is to exploit the intrinsic strengths of its core business, and to develop
opportunities in existing and new markets with new applications. LEM is a mid-size,
global company with approximately 1’550 employees worldwide. It has production
plants in Beijing (China), Sofia (Bulgaria), Geneva (Switzerland) and Tokyo (Japan),and a dedicated R&D Center in Lyon (France). With regional sales offices near its
customers’ locations, the Company is able to offer a seamless service around theglobe. LEM has been listed on the SIX Swiss Exchange since 1986; the company’s
ticker symbol is LEHN.
www.lem.com

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

For further information please contact
Andrea Borla (CFO)
Phone: +41 22 706 1250
Email: investor@lem.com

Appendix:
Key figures
In CHF millions

2017/18

2018/19

Changes

Orders received
Industry segment
Automotive segment
Total LEM

Q163.9
14.8
78.8

Q2
58.7
19.4
78.0

Q3
63.1
15.6
78.7

Q4
70.4
13.8
84.2

Q168.017.9
86.0

Q1 to Q1
+6.4%+20.9%+9.1%

Q1 to Q4
-3.4%
+29.9%+2.1%

Book-to-bill ratio
Industry segment
Automotive segment
Total LEM

Q1
1.02
1.11
1.04

Q20.96
1.27
1.02

Q3
1.11
0.98
1.08

Q4
1.140.94
1.10

Q10.961.040.98

Q1 to Q1-5.9%-6.9%-5.9%

Q1 to Q4
-15.9%+10.1%-11.6%

Sales
Industry segment
Automotive segment
Total LEM

Q162.6
13.3
75.9

Q2
61.1
15.2
76.3

Q3
56.9
15.9
72.8

Q4
61.6
14.6
76.2

Q1
70.8
17.3
88.0

Q1 to Q1
+13.1%+29.8%+16.0%

Q1 to Q4
+14.9%+18.0%+15.5%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
13.3
2.7
16.0

Q2
12.6
3.3
15.9

Q3
11.3
3.3
14.6

Q4
13.9
1.3
15.3

Q115.82.8
18.5

Q1 to Q1
+18.5%+4.0%+16.1%

Q1 to Q4
+13.3%+109.3%+21.6%LEM Holding SA
Avenue Beauregard 11700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Consolidated income statement

April to June
In CHF thousands

Sales
Cost of goods sold
Gross margin

2018/192017/18

Changes

88’049(48’235)
39’81475’905(40’983)
34’922

45.2%

46.0%

(7’735)(7’119)(6’509)097
18’548(7’643)(6’696)(4’696)089
15’977

21.1%

21.0%

Financial expense
Financial income
Foreign exchange effect(45)
28(1’150)

(28)
13670

Profit before taxes
Income taxes

17’381(3’894)

16’632(3’382)+4.5%

Net profit

13’487

13’251

+1.8%

15.3%

17.5%

Gross margin (in %)Sales expense
Administration expense
Research & development expense
Other expense
Other incomeEBIT
EBIT margin (in %)Net profit margin (in %)LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland+16.0%+14.0%+16.1%

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com